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Special Journals: Sales and Cash Receipts

Special Journals: Sales and Cash Receipts. Chapter 16. Using Special Journals. Special journals have amount columns that are used to record debits and credits to specific general ledger accounts Most transactions are recorded on one line

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Special Journals: Sales and Cash Receipts

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  1. Special Journals: Sales and Cash Receipts Chapter 16

  2. Using Special Journals • Special journals have amount columns that are used to record debits and credits to specific general ledger accounts • Most transactions are recorded on one line • Special journals simplify the journalizing and posting process Pg 450

  3. Journalizing and Posting to the Sales Journal • Sales journal is for recording sales of merchandise on account Pgs 450-453

  4. Completing the Sales Journal • All special journals have amount columns used to record debits and credits to specific general ledger accounts. • Instead of posting each transaction separately to the general ledger, the column totals are posted. • Therefore, only three postings are made to the general ledger from the sales journal. Pg 453

  5. Pg 454-455

  6. Posting Sales Tax Payable and Accounts Receivable Totals Pgs 455-456

  7. Forwarding Totals to New Page Pg 457

  8. Pg 459-460 Cash Receipts Journal • To keep the customer account balances current, the entries in the AT Credit column are posted daily to the Accounts Receivable Subsidiary Ledger. • The entries in the General Credit column are posted daily to the individual general ledger accounts • At month-end, all special amount column totals are posted to the general ledger accounts named in the headings.

  9. Receiving Cash for payment of Accounts Receivable Receiving Cash for Payment of Accounts Receivable with Discount Receiving Cash for Sales Pgs 460-461

  10. Bankcard Sales Receipt of cash for other than AR or Bankcard Pgs462-463

  11. Posting to the Accounts Receivable Subsidiary Ledger Posting to the General Ledger Pgs 463-464

  12. Completed Cash Receipt Journal The only column not posted as a total is the General Credit column. Those transactions are posted individually. Pg 465

  13. Proving the AR Subsidiary Ledger • The Accounts Receivable account is the Controlling Account for all AR Subsidiary Accounts • All accounts are included in alphabetical order, even those with a zero balance. • The Schedule of Accounts Receivable report is usually prepared at the end of each month. Pg 466

  14. Schedule of Accounts Receivable Pgs 467-468

  15. Detecting Errors in the Subsidiary Ledger • Proving the AR Subsidiary Ledger with the controlling account verifies that the sum of the subsidiary ledger equals the controlling account’s ending balance. • Certain errors will be apparent such as: a transaction that wasn’t posted or a miscalculation of account balance. • It doesn’t ensure that transactions were posted to the correct customer account. Pg 468

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